13 Best Vacation Stocks to Buy Now

6) Hilton Grand Vacations Inc. (NYSE:HGV)

Number of Hedge Fund Holders: 27

Hilton Grand Vacations Inc. (NYSE:HGV) is a timeshare company, which markets and sells vacation ownership intervals (VOI) and manages resorts in leisure and urban destinations.

Wall Street analysts believe that the company’s revenues and earnings should be aided by strong distribution network growth and lead source diversification with the help of acquisitions. Hilton Grand Vacations Inc. (NYSE:HGV) continues to focus on integrating acquisitions and optimizing its sales and marketing structure. Additionally, the Street remains optimistic about its recently completed acquisition of Bluegreen Vacations.

Apart from the strategic benefits which are expected to come from scale and expanded lead generation, the transaction is expected to be adjusted free cash flow accretive and should generate ~$100 million in run-rate cost synergies in the initial 24 months following close. On a related note, on 17^th January 2024, the company announced the completion of this acquisition. The deal also supports its higher FCF conversion and enhances Hilton Grand Vacations Inc. (NYSE:HGV)’s base of recurring EBITDA.

Also, the integration of Diamond Resorts further broadens Hilton Grand Vacations Inc. (NYSE:HGV)’s addressable market via an expanded regional network in the US and a wider range of products and price points.

As per Wall Street, the shares of Hilton Grand Vacations Inc. (NYSE:HGV) have an average price target of $45.20. Insider Monkey’s 2Q 2024 data revealed that the company was held by 27 hedge funds.

Laughing Water Capital, an investment management company, released its second-quarter 2024 investor letter. Here is what the fund said:

“Hilton Grand Vacations Inc. (NYSE:HGV) – I estimate that HGV, our time share business, is trading at a ~25% free cash flow yield and buying back ~10% of its market cap annually. This is a formula that will eventually work very well, unless people decide to stop going on vacation.”